Very interesting article - with robust considerations! Retirement is a road that may look far away, but you could shock yourself by how quickly you cover the distance! No one should allow themselves be caught unprepared. A company I used to work for did a study because they saw many retirees dying within 10 years of retirement (less than 70 years)! Reason discovered - poor planning for retirement, resulting in sharply lower standard of living than when they worked, which led to depression, and all the ailments associated with depression. Surprised? I determined I wouldn’t allow that happen to me.
The issue that now needs be considered is how to manage the menace of inflation, political and economic instability on such long term savings! It’s concerning that the way so many things seem tied to the economy, one’s best effort at saving may not lead to anticipated eureka. We need to discuss means to mitigate against these “thiefing” issues.
You do raise a valid point in the deterioration of the quality of living standards post retirement. In my opinion, the inflation impact on retirement savings is the hardest thing to plan for. Personally, I shy on the conservative path or using a 1-2% rule for savings as opposed to the 4% recommended. This provides me some buffer to deal with potential inflation down the line.
Another thing to consider for retirement is to diversify away from fixed income assets. On the surface, they sound appealing based on the low risk and guaranteed payout, but they could be detrimental to our retirement plans when there is inflation. Not saying to stay away completely, but make sure there is ample investment in inflation protected assets like Real Estate, Stocks, Bitcoin, etc.
Great read! Love using the listening feature to go through these during my work day, it’s like listening to my audiobooks 😁.
Very interesting article - with robust considerations! Retirement is a road that may look far away, but you could shock yourself by how quickly you cover the distance! No one should allow themselves be caught unprepared. A company I used to work for did a study because they saw many retirees dying within 10 years of retirement (less than 70 years)! Reason discovered - poor planning for retirement, resulting in sharply lower standard of living than when they worked, which led to depression, and all the ailments associated with depression. Surprised? I determined I wouldn’t allow that happen to me.
The issue that now needs be considered is how to manage the menace of inflation, political and economic instability on such long term savings! It’s concerning that the way so many things seem tied to the economy, one’s best effort at saving may not lead to anticipated eureka. We need to discuss means to mitigate against these “thiefing” issues.
You do raise a valid point in the deterioration of the quality of living standards post retirement. In my opinion, the inflation impact on retirement savings is the hardest thing to plan for. Personally, I shy on the conservative path or using a 1-2% rule for savings as opposed to the 4% recommended. This provides me some buffer to deal with potential inflation down the line.
Another thing to consider for retirement is to diversify away from fixed income assets. On the surface, they sound appealing based on the low risk and guaranteed payout, but they could be detrimental to our retirement plans when there is inflation. Not saying to stay away completely, but make sure there is ample investment in inflation protected assets like Real Estate, Stocks, Bitcoin, etc.
😊